Last edited 04 May 2019

Main author

Grant Erskine Architects Architect

Architect's fees

Contents

[edit] Introduction

Fees charged by architects vary very significantly, and since the Royal Institute of British Architects (RIBA) abolished its indicative fee scales, there is very little benchmarking information freely available.

Fees are commonly quoted as being between 8% and 12% although, according to a survey by Building Design in 2012, '...only 21% of architects achieve fee levels of above 5% while 55% are paid fee levels of 4% or less...'. A more recent survey by the Architects' Journal in 2017 reported fee levels of between 2.75% and 15%.

However, as fees are entirely dependent on the nature of the project and the circumstances of the appointment, these figures are not very illuminating.

Generally speaking, large new-build projects in rural areas attract much lower percentage fees than small works to existing buildings in London; commercial work attracts lower fees than private residential work, and works to historic or listed buildings attract higher fees.

Fees will vary based on:

Attempting to save money by driving fees down can be a mistake for a client. Fees represent a small part of the whole-life costs of a project, but poor design can have a long lasting and expensive impact. This is sometimes demonstrated by reference to the following notional, relative costs illustration of a typical project:

(Ref. Report of the Royal Academy of Engineering on 'The long term costs of owning and using buildings' (1998)).

However, this has been criticised as misleading, not least because the construction industry accounts for around 7% of GDP, implying a much more significant proportion of business costs than the ratio suggests. Other ratios of construction-costs-to-operational-costs-to-business costs have suggested figures as low as 1:0.6:6 for some types of buildings. However, the usefulness of these ratios is questionable, other than if they are calculated based on actual figures for specific businesses.

[edit] Fee types

There are three standard ways an architect may charge:

All three methods will generally bring the architect to a similar position. This is because there is a relationship between the type of the project, its build cost and the amount of hours required. Ultimately, the fee quoted is likely to come down to how many hours the job will take multiplied by a charge-out rate.

A survey by the RIBA in 2014 (ref. RIBA Journal February 2014) revealed that the most common methods of appointing architects were:

Direct appointment 50%
Competitive fee bid or financial tender only 21%
Framework agreement with or without further competition for specific projects 10%
Invited competitive interview (no pre-qualification questionnaire PQQ) 4%
Expression of interest / PQQ only (no design work) 3%
Expression of interest / PQQ followed by competitive interview (no design work) 3%
Expression of interest / PQQ followed by design competition 2%
Invited design competition (no PQQ) 1%
Open design competition 1%
Other 4%

Smaller practices tended to be appointed mostly by direct appointment (61%), whereas this was less common for larger practices (25%).

For detailed descriptions of the sequence of activities necessary to appoint architects, see the article: Appointment, and the work plan stages:

NB: When appointing an architect:

[edit] Role of an architect

It is important that the scope of services required from an architect is properly described and is set out in writing, along with an agreed schedule of payments.

Very broadly, the role performed by an architect might include some or all of the following services:

If the architect is to perform lead designer or lead consultant roles, this must be clearly agreed.

It is also important to be clear as to what extent expenses are included in the fee, such as travelling, printing costs, model making costs and so on.

[edit] Additional services

Some services will only be undertaken by an architect if they are specifically identified in their appointment documents, otherwise they may not be included within the fee. These are described as 'other services' on some forms of appointment and might include:

This is an amended version of an article created by --Grant Erskine Architects 11:11, 14 January 2013 (UTC)

[edit] Related articles on Designing Buildings Wiki

[edit] External references

Comments

Project specific issues:

  • Client - repeat or new (is it an SPV), trust, how much money do they have - check Companies House, who are the stakeholders, cost/quality/time, client brief, scope of works, procurement, contract type, appointment (RIBA principle 2.3 and ARB 4.4)
  • Proposals - build cost and programme (benchmarking), complexity, architects' experience, size, quality, repetition, sustainability (RIBA 3.3)
  • Planning - historical issues, LA policy, neighbours, change of use, environmental issues, conservation, land law (restrictive covenants/easements), party walls

Practice specific issues:

  • Resourcing - staff available, their experience, how long will it take (benchmarking), project lead, technical ability required (RIBA 2.2, ARB 4.2)
  • Finances - cash flow, working capital available, monthly payments, tax implications (overseas), PI cover, financial aspirations - new sector/marketing - is it in the businss plan, overdraft facilities (RIBA Guidance note 5 / ARB Standard 8 and 9.1)
  • Benchmarking - previous fees on similar projects, fellow practitioners chargers, AJ 100 benchmarking analysis and data, RIBA Business Benchmark Survey